Executive Summary

KRNY’s Q3 FY2025 delivered stable earnings with diluted EPS of $0.11 and net interest margin expansion to 1.90%, driven by deposit growth, lower deposit costs, and reduced borrowings .
EPS modestly beat the Street, while “revenue” on S&P’s basis (net interest income after provision + non-interest income) was a slight miss; company “total revenue” (net interest income + non-interest income) rose sequentially and year over year ; EPS/Revenue estimates below from S&P Global*.
Management guided to continued net interest margin expansion into the June quarter (Q4 FY2025), citing CD repricing tailwinds and funding mix improvement; dividend maintained at $0.11 per share .
Credit quality remained robust with NPAs steady at 0.49% of assets and annualized net charge-offs at 0.03%; liquidity capacity covered adjusted uninsured deposits ~3x .

What Went Well and What Went Wrong

What Went Well

Net interest margin expanded 8 bps QoQ to 1.90% as lower-cost deposits funded paydowns of FHLB overnight borrowings, and deposit rates broadly declined .
Deposits grew $36.3M QoQ (+0.6%), with strength in interest-bearing demand and consumer savings, while overall borrowings declined $45.0M (-3.6%), improving funding mix .
Asset quality stable: NPAs at 0.49% of assets; annualized net charge-offs at 0.03%; ACL at 0.76% of total loans with coverage ~118% of NPLs . Management: “We anticipate continued strong margin expansion into the June quarter...” .

What Went Wrong

Non-interest income fell 6.4% QoQ on lower gain on sale of loans and softer electronic banking fees (absence of a prior-period non-recurring increase) .
Net interest income benefited from lower funding costs, but asset yields declined (average yield on interest-earning assets -12 bps QoQ to 4.42%) limiting revenue growth .
A single non-interest bearing depositor withdrew $29.3M (construction financing), masking an otherwise +$14.9M (+2.5%) increase in non-interest bearing deposits ex this account .

Financial Results

Metric	Q1 FY2025 (Sep 30, 2024)	Q2 FY2025 (Dec 31, 2024)	Q3 FY2025 (Mar 31, 2025)
Net Income ($USD Millions)	$6.092	$6.566	$6.648
Diluted EPS ($USD)	$0.10	$0.10	$0.11
Net Interest Income ($USD Millions)	$32.446	$32.612	$34.042
Non-Interest Income ($USD Millions)	$4.626	$4.873	$4.562
Total Revenue (Company basis: NII + Non-Interest) ($USD Millions)	$37.072	$37.485	$38.604
Net Interest Margin (%)	1.80%	1.82%	1.90%
Efficiency Ratio (%)	80.35%	78.86%	78.72%
ROA (annualized, %)	0.32%	0.34%	0.35%
ROE (annualized, %)	3.25%	3.51%	3.57%

YoY vs Q3 FY2024 (Mar 31, 2024):

Total Revenue (Company basis): $38.604 vs $38.522 (+0.2%) .
Diluted EPS: $0.11 vs $0.12 (-$0.01) .
NIM: 1.90% vs 1.89% (+1 bp) .
Efficiency Ratio: 78.72% vs 75.43% (+329 bps) .

Segment/Portfolio KPIs:

Portfolio Metric ($USD Millions)	Q1 FY2025 (Sep 30, 2024)	Q2 FY2025 (Dec 31, 2024)	Q3 FY2025 (Mar 31, 2025)
Multi-family Mortgage	$2,646.187	$2,722.623	$2,733.406
Nonresidential Mortgage (CRE)	$950.771	$950.194	$988.074
Commercial Business	$145.984	$135.740	$140.224
Construction	$227.327	$176.704	$174.722
1–4 Family Residential	$1,768.230	$1,765.160	$1,761.465
Consumer (Home Equity + Other)	$47.706	$49.879	$52.558

Balance Sheet & Credit KPIs:

KPI	Q1 FY2025 (Sep 30, 2024)	Q2 FY2025 (Dec 31, 2024)	Q3 FY2025 (Mar 31, 2025)
Total Assets ($USD Millions)	$7,772.379	$7,731.385	$7,733.141
Deposits ($USD Millions)	$5,470.512	$5,671.060	$5,707.348
Borrowings ($USD Millions)	$1,479.888	$1,258.949	$1,213.976
Loans Receivable ($USD Millions)	$5,784.246	$5,791.758	$5,846.175
NPLs / Total Loans (%)	0.69%	0.65%	0.64%
NPAs / Total Assets (%)	0.51%	0.49%	0.49%
ACL / Total Loans (%)	0.78%	0.77%	0.76%
Adjusted Uninsured Deposits ($USD Millions)	$773	$798	$799
Available Liquidity Capacity ($USD Millions)	$2,316 available (of $3,586 capacity)	$2,422 available (of $3,636 capacity)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Interest Margin (NIM)	Q4 FY2025 (June quarter)	Early-stage improvement noted in Q2 commentary; sequential monthly growth in Q2	“We anticipate continued strong margin expansion into the June quarter”	Raised (directional)
Retail CD Repricing Tailwind	Next 12 months	~$1.1B maturities expected to roll at lower rates	~$1.1B maturities remain; Q3 cadence updated with weighted average yields by maturity (e.g., 3Q25: 3.39%)	Maintained tailwind; updated cadence
Dividend	Ongoing	$0.11 per share maintained	$0.11 per share declared (payable May 21, 2025)	Maintained

Earnings Call Themes & Trends

Note: No earnings call transcript identified for Q3 FY2025; KRNY posted an earnings release and investor presentation without a call link .

Topic	Previous Mentions (Q1 FY2025)	Previous Mentions (Q2 FY2025)	Current Period (Q3 FY2025)	Trend
Net Interest Margin trajectory	NIM inflection; sequential monthly increases; market rate cuts a positive catalyst	NIM up +2 bps QoQ; sequential monthly growth; funding mix improved	NIM up +8 bps QoQ to 1.90%; expected to expand further into June quarter	Improving; guided higher
Funding mix (deposits vs borrowings)	Shift to brokered CDs to replace FHLB advances	Deposits +3.7% QoQ; borrowings -14.9% QoQ	Deposits +0.6% QoQ; borrowings -3.6% QoQ; cost of funds -24 bps	Improving
Liquidity vs uninsured deposits	Capacity rose; coverage >2.5x adjusted uninsured	Capacity $3.586B; available $2.316B; 2.9x coverage	Capacity $3.636B; available $2.422B; 3.0x coverage	Strengthening
Asset quality/NYC multifamily exposure	Strong portfolio; limited rent-regulated exposure	NPLs mix primarily multifamily; ratios stable	NPLs $37.7M; multifamily ~ $24.9M; NPAs 0.49%	Stable
Securities portfolio & duration	Portfolio balances declining; duration ~3.4 years; floating ~33%	After-tax HTM losses ~1.79% of tangible equity	After-tax HTM losses ~1.56% of tangible equity; yields down QoQ	Manageable; yields down

Management Commentary

“Quarter over quarter net interest income grew by $1.4 million, resulting in eight basis points of net interest margin expansion… We anticipate continued strong margin expansion into the June quarter, the final of our 2025 fiscal year.” — Craig L. Montanaro, President & CEO .
“Despite recent fluctuations in US Treasury rates and broader market indices, our core business continues to perform exceedingly well…” — Craig L. Montanaro .

Q&A Highlights

No Q3 FY2025 earnings call or public Q&A identified; the company furnished the press release and investor presentation only .

Estimates Context

Metric	Q1 FY2025	Q2 FY2025	Q3 FY2025
Primary EPS Consensus Mean ($)	0.085*	0.105*	0.105*
Primary EPS Actual ($)	0.10*	0.10*	0.11*
Revenue Consensus Mean ($USD) (SPGI basis)	37.187M*	37.994M*	38.707M*
Revenue Actual ($USD) (SPGI basis)	36.964M*	37.378M*	38.238M*
Primary EPS – # of Estimates	2*	2*	2*
Revenue – # of Estimates	1*	1*	1*

Q3 FY2025 EPS beat by $0.005 vs consensus (0.11 vs 0.105); revenue a slight miss on SPGI basis (actual $38.238M vs $38.707M). Drivers: lower cost of funds and deposit growth supported NIM expansion (EPS tailwind), partly offset by lower asset yields and weaker non-interest income (revenue headwind) .
Company “total revenue” (NII + non-interest income) rose to $38.604M, but SPGI revenue uses NII after provision + non-interest income (thereby lower by provision expense) .

Values retrieved from S&P Global*.

Key Takeaways for Investors

Margin expansion is the central narrative: deposit mix improvement and CD repricing at lower rates should support further NIM gains into Q4 FY2025; watch deposit retention and pricing discipline .
Funding risk moderating: borrowings continue to decline as deposits grow; liquidity capacity covers adjusted uninsured deposits ~3x, reducing tail risk .
Credit remains solid: NPAs steady at 0.49%, annualized net charge-offs at 0.03%, ACL coverage consistent; multifamily concentration monitored but metrics are stable .
Earnings quality: EPS beat on expanding NIM; non-interest income volatility persists (loan sale gains, electronic banking fees), so core margin trajectory is the key earnings lever .
Capital: TBV/share increased to $9.80; regulatory ratios well above “well-capitalized” thresholds; dividend maintained at $0.11, signaling confidence in cash generation .
Near-term trading implications: Positive bias on continued margin expansion catalysts; monitor subsequent quarter delivery vs directional guide and any macro rate shifts that affect deposit pricing.
Medium-term thesis: Franchise with granular deposits, prudent credit, and sufficient liquidity/capital to compound book value as NIM normalizes; focus on execution around funding costs and asset yield mix.

Source Documents Read (Q3 FY2025 and Prior Quarters)

Q3 FY2025 press release and tables (full) .
Q3 FY2025 Form 8-K including Exhibits 99.1 (press release) and 99.2 (investor presentation) with full financial tables .
Q3 FY2025 investor presentation slides (full) .
Q2 FY2025 press release and slides (full) .
Q1 FY2025 press release (full) .
Company IR events page (no Q3 call transcript identified) .
SEC 8-K (April 24, 2025) .

Kearny Financial Corp. (KRNY)·Q3 2025 Earnings Summary